Answer:
B: Is transferred to capital reserve account if the investment long term investment
D: Is transferred to profit and loss A/c only if the investment is current investment
Step-by-step explanation:
Fixed assets are long term investments and when these assets are sold at a profit, the profit on the sale of such investment is usually transferred to Capital Reserve Account.
Meanwhile, current assets are current investments and when these assets are sold at a profit, the profit on the sale of such investment is usually transferred to profit and loss account.
Thus, options B & D are correct.
